Mastercard Revolutionizes Crypto Transactions with Innovative Crypto Credential Service
In a groundbreaking move set to simplify and secure cryptocurrency transactions, Mastercard has introduced its Crypto Credential service. This innovation allows users to send and receive cryptocurrency using easily recognizable aliases instead of complex blockchain addresses. The new service is live on Bit2Me, Lirium, and Mercado Bitcoin exchanges, facilitating seamless blockchain transactions across Latin America and Europe.
Expanding the Reach of Crypto Transactions
The Mastercard Crypto Credential service is now available to users in Argentina, Brazil, Chile, France, Guatemala, Mexico, Panama, Paraguay, Peru, Portugal, Spain, Switzerland, and Uruguay. This widespread availability supports both cross-border and domestic transfers across multiple currencies and blockchains, enhancing the ease of use and accessibility of cryptocurrency.
Building on its success, Foxbit has become the latest crypto wallet provider to join the Mastercard Crypto Credential pilot, extending the service’s reach to more consumers. Additionally, Lulubit users will gain access through its integration with Lirium, further broadening the ecosystem.
Enhancing Security and Trust
Mastercard Crypto Credential aims to verify interactions among consumers and businesses on blockchain networks, providing an assurance that users meet specific verification standards. It also ensures the recipient’s wallet supports the transferred asset, eliminating the complexity of knowing which assets or chains are supported by the recipient.
This service enhances trust and certainty in transactions by exchanging metadata, which simplifies the process for users. Furthermore, Mastercard Crypto Credential supports the exchange of Travel Rule information, a regulatory requirement for cross-border transactions to ensure transparency and prevent illicit activities.
Streamlining the Transaction Process
The process begins with the exchange verifying a user under Mastercard’s set standards. Once verified, the user receives an alias to send and receive funds across supported exchanges. When initiating a transfer, Mastercard Crypto Credential checks the validity of the recipient’s alias and their wallet’s compatibility with the digital asset and blockchain. If there’s a mismatch, the sender is notified, and the transaction does not proceed, protecting all parties from potential loss.
A Milestone in Crypto Innovation
This initiative marks the first real-world application of Mastercard’s Crypto Credential vision, first unveiled at Consensus 2023. The live peer-to-peer (P2P) transactions demonstrate the potential to significantly expand and support the domestic and cross-border remittance market.
Walter Pimenta, Executive Vice President of Product and Engineering for Latin America and the Caribbean at Mastercard, expressed excitement about the development: “Mastercard continues to invest in its technology, standards, and partnerships to bring safe, simple, and secure payments to the forefront. As interest in blockchain and digital assets surges globally, it is essential to deliver trusted and verifiable interactions across public blockchain networks. We’re thrilled to work with this dynamic set of partners to bring Mastercard Crypto Credential closer to realizing its full potential.”
Looking Ahead
Initially available to a select group of crypto wallet users on a first-come, first-serve basis, Mastercard plans to roll out wider availability to over 7 million users across participating exchanges in the coming months. This milestone is a significant step toward Mastercard’s goal of creating a more accessible and secure crypto ecosystem, potentially revolutionizing the way people interact with digital assets globally.
